Dhaka, Monday, 17 February 2020

BD govt offers €50 million fund to offer low-cost loans

BD govt offers €50 million fund to offer low-cost loans

Staff Correspondent: The government has formed a €50 million fund to give out low-cost loans for garment factory remediation with the view to enhancing workplace safety in the country’s main export-earning sector. Each garment factory will get loans of up to €1 million from the fund at 7 percent interest rate. In exceptional cases, the amount of loan will be increased to €3 million for massive upgrades.

The fund can also be used to reduce pollution, ensure efficient use of energy and create a decent place to work, as per the notice sent out to all lenders and non-bank financial institutions.

The central bank will play the role of implementing agency for the fund, formed with soft loans from the Agence Française de Développement, which is a public financial institution that implements the policy defined by the French government. Apart from the loan fund, an additional €14.29 million will be provided as grants to the successful garment factories and banks that disburse the loans properly.